BoJ’s Ueda: Increase rates if price trend rises as anticipated
Bank of Japan (BoJ) Governor Kazuo Ueda answered a parliamentary inquiry on Thursday. Ueda said that the Japanese central bank can adjust the degree of monetary accommodation by raising interest rates if trend inflation accelerates gradually, per Reuters.
Key quotes
“Low real rate supports economy and inflation.”
“Need to monitor FX and oil for real wages.”
“Increase rates if price trend rises as anticipated.”
“There is no clear evidence that Japan's natural rate of interest continued to fall from five years ago when it's estimated to have been around zero.”
“BoJ can adjust the degree of monetary accommodation via rate hikes if trend inflation accelerates gradually.”
Market reaction
At the time of writing, USD/JPY is trading 0.03% higher on the day to trade at 155.56.
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